Quick answer
Private mortgage lenders are non-bank funders, such as individual investors, private credit funds, family offices and specialist lenders, who lend against property using their own credit rules. For business borrowers they offer speed and flexibility on deals banks decline, in exchange for strong security, a clear exit and pricing that reflects the risk and short term.
Key points
- Private lenders set their own credit policy, which is where their flexibility comes from
- Funding comes from individuals, pooled funds or a lender's own balance sheet
- Good private lenders are transparent about every fee before you commit
- Check the lender's identity, documents and default terms before signing
- Who lends
- Investors, funds, family offices, non-banks
- Security
- First mortgage, second mortgage or caveat
- Loan size
- $20,000 to $5,000,000
- Purpose
- Business purposes only
“Private lender” covers a wide range of people and businesses. Knowing who you’re dealing with, and how they think, makes the whole process faster and safer.
Who private mortgage lenders are
Individual investors. People with capital who lend directly against property, often through a solicitor who prepares the documents. They can be very quick and flexible on the right deal.
Private credit funds. Investors pool money into a fund, and a manager lends it out against property. Funds tend to have clear lending criteria, regular capacity and professional processes.
Family offices. Wealthy families investing their own money, sometimes with a preference for particular property types or regions.
Specialist non-bank lenders. Businesses whose main activity is lending, using their own capital or wholesale funding lines. They often run set products such as caveat loans or second mortgages at scale.
From your side the differences matter less than you’d think. What counts is that the lender can fund on your timeline, that its documents are fair and clear, and that its appetite fits your property and purpose.
How private lenders decide
Every private lender has its own preferences, but nearly all of them weigh the same things.
- Security first. The property’s value and saleability come before anything else. Metro residential is the easiest security to fund; specialised commercial, rural land and vacant blocks are harder and attract lower LVRs.
- Exit next. The lender wants a realistic path to repayment inside the term, with some buffer.
- Purpose and story. Why do you need it, why now, and why isn’t a bank doing it? A straight answer builds confidence quickly.
- Character and history. Past defaults or a tax debt aren’t automatic barriers, but undisclosed surprises are. Lenders hate finding something you didn’t mention.
How appetite differs between lenders
| Lender preference | Example |
|---|---|
| Position on title | Some only lend in first position; others specialise in second mortgages or caveats |
| Property type | Some avoid vacant land, rural property or specialised buildings |
| Location | Some focus on metro areas of particular states |
| Loan size | Minimum and maximum amounts vary widely |
| Term | Some prefer under 12 months; others are comfortable with three years |
This is why matching matters. Sending a vacant land deal to a residential-only lender wastes a valuation fee and a week. We match the deal to the right funder before anything is ordered.
How to check a private lender
Before you sign anything:
- Confirm who they are. Search the company name and ACN on the ASIC register and check the ABN on the Australian Business Register.
- Get every cost in writing, as dollar amounts, including establishment, valuation, legal, line or monthly fees, and default costs.
- Be wary of upfront fees demanded before a written offer exists. Valuation fees paid directly to a valuer are normal; large “commitment” or “processing” fees paid into a personal account are not.
- Read the default clauses. Know the default rate, the grace period and what triggers enforcement.
- Get independent legal advice. Many private lenders insist on it anyway, and it protects you.
Our guide to private lending red flags covers warning signs in more detail, and the letter of offer checklist walks through the document line by line.
Where we fit
We sit between you and the funders. You tell us about the deal once. We work out which private lender is the best fit for the property, the position on title, the amount and the timeline, and we talk to you before your file goes to anyone. You’re not signing up to have your details blasted across a list of lenders.
Questions to ask any private lender
Before signing with a private lender, whether we introduced them or not, ask these:
- What is the total cost over the term, including every fee?
- Is there a minimum interest period, and what happens if I repay early?
- What default charges apply, and when do they start?
- Can the term be extended, and on what conditions?
Clear answers in writing are a good sign. Vague answers are a reason to slow down.
Start with the deal
If you have property with equity and a business need, tell us about it. We’ll tell you honestly whether private money suits the deal, what kind of lender is likely to back it and roughly what to expect. There’s no credit check when you first enquire.
Fill the form in as accurately as you can, particularly the property details and the deadline, so we can point you to the right lender first time. See if you qualify, or learn how private lenders compare with banks and then send us the deal.
Frequently asked questions
Are private mortgage lenders safe to deal with?
Most are reputable businesses, but quality varies. Check the lender's company details on the ASIC register, insist on full written terms, never pay large upfront fees before an offer is issued, and have a solicitor read the documents. A good lender welcomes all of that.
Do private lenders need a credit licence?
A licence is generally needed for regulated consumer credit. Loans made predominantly for business purposes usually fall outside that regime, so many business-only private lenders don't hold one. That makes your own checks, and independent legal advice, more important.
Why use a broker or desk rather than going direct?
Private lenders each have their own appetite: some love commercial property, others won't touch land, some only do first position. Matching your deal to the right funder first time saves valuation fees and days. We do that matching without spraying your file around.
Where does private lenders' money come from?
Usually from investors seeking a secured return. In a fund, many investors pool money and the manager lends it out against property. Some lenders use their own capital or lines of finance. For you, what matters is that the lender can settle on time and its terms are clear.